Stock Market & Financial Investment News

Standard General plans American Apparel future without ex-CEO, Reuters saysStandard General, a little-known hedge fund that has taken control American Apparel, has organized a recovery plan for the retailer with or without its recently dethroned CEO Dov Charney, according to Reuters citing comments from the fund's partner David Glazek. Reference Link

American Apparel files to delay Form 10-K The company is engaged in discussions with its revolving credit facility lender with respect to certain waivers and amendments to such facility that, among other things, would reset certain covenants going forward, permit the execution of the previously disclosed $15M credit agreement between one or more entities affiliated with Standard General and one or more of the Company’s foreign subsidiaries as borrowers and waive noncompliance with certain covenants. The Company’s staff and resources have been substantially committed to such discussions and the outcome thereof would impact the Company’s financial statements disclosures as of and for the year ended December 31, 2014 and other information required to be disclosed in the Annual Report. The Company intends to use the net proceeds from the Standard General Credit Agreement to fund the Company’s near-term interest payments on certain of its indebtedness, including the April interest payment on its senior secured notes, and other liquidity needs. No assurances can be given that the Company will be successful in obtaining such amendments and waivers or in consummating the Standard General Credit Agreement when expected, or at all. In light of the foregoing, the process of completing the financial statements and the related information required to be included in the Annual Report could not be completed by the scheduled filing deadline for the Annual Report.